Inflation Adjusted Silver & Gold

We all know that inflation is constantly eroding the purchasing power of the dollar. Have you thought about the impact of inflation on the historical price of gold and silver? What does gold's chart look like when calculated in 2005 dollars? And silver?

I thought the readers of these alerts would find the attached article from The Moneychanger to be as interesting as I found it to be. So I called my friend Franklin Sanders to ask if I could share it with the readers of these alerts, and he graciously agreed.

Through A Glass, Clearly
By Franklin Sanders

Inflation makes it hard to judge the value of everything. Because the measuring unit, the dollar, is always dwindling, how do you know what a price 10 or 20 years ago means? It's like shooting skeet off the back of a bass boat in a high storm.

To clear my mind, I went back and adjusted silver and gold prices for inflation.

Observe: GOLD hit a high of $2,168.65, adjusted to 2005 dollars. The secondary peak on October 10, 1980 equalled $1,777.76 in 2005 dollars. Even the December 1987 peak equalled $871.12. All that makes the recent peak at $527 look pretty pale, not to mention my bull market target of $1,250.00.

In inflation adjusted 2005 dollars SILVER hit a 1980 high at $127.87; hit $27.63 in February 1983, and $15.11 in May, 1987. Do y'all understand now why I'm so optimistic on silver's future, and why my $80 bull market target is really conservative?

Franklin Sanders, a coin and bullion dealer in Westpoint, Tennessee, is the editor of The Moneychanger in which the above article first appeared.

Published by GoldMoney
Copyright © 2006. All rights reserved.
Edited by James Turk, alert@goldmoney.com

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